South Korea Crypto Volume Plunges: Unveiling the Summer Slowdown Impact

Key Points

1. South Korea's top cryptocurrency exchanges saw a 20.3% drop in trading volume, totaling 3.54 trillion won ($2.55 billion), with a decrease of 899 billion won ($647 million) from the previous day.

2. Upbit leads the market with 65.8% share, followed by Bithumb at 30.8%, and Coinone and Korbit with smaller shares.

3. The summer slowdown, or 'summer doldrums,' is a recurring phenomenon affecting trading activity due to vacations and reduced market participation.

4. Reduced trading volume impacts exchanges by lowering revenue, leading to decreased liquidity and potentially wider bid-ask spreads.

5. Factors that could lead to a recovery include regulatory clarity, institutional interest, and the 'Kimchi Premium,' a unique characteristic of the South Korean market where local prices exceed global averages.